As a result of flooding in June and too much heat in July and August, the corn crop turns out to be well below average. As a result of the poor weather,
A. both equilibrium price and quantity for corn will rise.
B. both equilibrium price and quantity for corn will fall.
C. equilibrium price will rise and equilibrium quantity for corn will fall.
D. equilibrium price will fall and equilibrium quantity for corn will rise.
C. equilibrium price will rise and equilibrium quantity for corn will fall.
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The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the
A) total fixed cost curve downward. B) marginal product of labor curve downward. C) average variable cost curve downward. D) marginal product of labor curve upward.
The best weather in a decade has given Australia a bumper wheat crop. Australia is a small open economy. Based on this information alone, you would expect that
A) desired investment would decrease. B) desired investment would increase. C) the current account would increase. D) the current account would decrease.
One reason demand curves slope downwards is
a. Marginal value increases with each purchase b. Marginal value declines with each purchase c. Total value declines with each purchase d. All of the above
Which of the following best explains the determination of the equilibrium price of a product?
a. Production costs b. The supply of a good. c. The interaction of supply and demand. d. The decisions of government.